Ramort Company reports the following for its single product. Ramort produced and sold 20,600 units this year. $ 13 per unit $ 15 per unit $6 per unit $ 41,200 per year $2 per unit Direct materials. Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Sales price QS 19-12 (Algo) Variable costing and overproduction LO C1 Ramort doubles its production from 20,600 to 41,200 units while sales remain at the current 20,600 unit level. (a) Compute contribution margin when production is 41,200 units under variable costing. (b) What is the change in contribution margin by increasing production from 20,600 units to 41,200 units under variable costing? Complete this question by entering your answers in the tabs below. Required A Required B Compute contribution margin when production is 41,200 units under variable costing. Variable expenses $ 65,800 per year $ 69 per unit Contribution margin RAMORT COMPANY Contribution Margin (Variable Costing)
Ramort Company reports the following for its single product. Ramort produced and sold 20,600 units this year. $ 13 per unit $ 15 per unit $6 per unit $ 41,200 per year $2 per unit Direct materials. Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Sales price QS 19-12 (Algo) Variable costing and overproduction LO C1 Ramort doubles its production from 20,600 to 41,200 units while sales remain at the current 20,600 unit level. (a) Compute contribution margin when production is 41,200 units under variable costing. (b) What is the change in contribution margin by increasing production from 20,600 units to 41,200 units under variable costing? Complete this question by entering your answers in the tabs below. Required A Required B Compute contribution margin when production is 41,200 units under variable costing. Variable expenses $ 65,800 per year $ 69 per unit Contribution margin RAMORT COMPANY Contribution Margin (Variable Costing)
Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 3CE: Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Ramort Company reports the following for its single product. Ramort produced and sold 20,600 units this year.
$ 13 per unit
$ 15 per unit
$6 per unit
$ 41,200 per year
$ 2 per unit
Direct materials.
Direct labor
Variable overhead
Fixed overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
Sales price
QS 19-12 (Algo) Variable costing and overproduction LO C1
Ramort doubles its production from 20,600 to 41,200 units while sales remain at the current 20,600 unit level.
(a) Compute contribution margin when production is 41,200 units under variable costing.
(b) What is the change in contribution margin by increasing production from 20,600 units to 41,200 units under variable costing?
Complete this question by entering your answers in the tabs below.
Required A Required B
Compute contribution margin when production is 41,200 units under variable costing.
Variable expenses
$ 65,800 per year
$ 69 per unit
Contribution margin
RAMORT COMPANY
Contribution Margin (Variable Costing)
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